MedPAC releases March 2026 report to Congress

The Medicare Payment Advisory Commission March 12 released its March 2026 report to Congress, which includes its recommended payment rates for hospital inpatient and outpatient services by the current law amount for 2027 and a recommendation to distribute an additional $1 billion to safety-net hospitals by transitioning to a Medicare safety-net index policy. The AHA in January urged the commission to propose higher updates. “Hospitals will continue to face significant challenges in managing the gap between Medicare underpayments and rising costs as they strive to sustain high-quality services for their communities,” the AHA wrote in its comments. “These pressures are compounded by broader market factors, such as changes in health insurance coverage that may further increase the number of uninsured and growing expectations from states and employers to constrain spending.”

The MedPAC report also highlights trends and key issues in post-acute care and reviews the status of the Medicare Advantage program, Medicare Part D and ambulatory surgical centers. Additionally, the report includes two congressionally mandated reports, one covering the impact of recent changes to the home health prospective payment system and the second covering the performance of dual eligible special needs plans.